Identification

• If the disabled taxpayer is younger than 65, then the taxpayer must have a long-term disability and must obtain certification from a doctor that the disability is permanent and will last for at least one year.
  
  

Size of Income

• If the taxpayer's income consists solely of Social Security income, then the taxpayer will most likely not have to file an IRS return. However, if the disabled taxpayer receives additional income, then the additional income over $25,000 may have to be claimed as income, and the individual will have to file a tax return.
  
  

Types

• Taxed disability benefits do not include benefits received through the Social Security Administration as Supplement Security Income (SSI). SSI is provided on an as-needed basis to disabled indigents. However, Social Security Disability Insurance (SSDI) benefits are provided to individuals who have paid enough Social Security taxes to qualify for the SSDI program. SSI is provided to individuals who may not have worked and paid into the SSDI insurance pool. SSI is typically not taxable and not included as income.